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TRY PRESIDENT FOR BANK FRAUD Petty Charged With Misdirecting $30,295 of National In= stitution's Funds. TURNED MONEY OVER TO TRACTION co., IT IS SAID As a Result Washington Concern Went "Broke" and Suspended Payment. Charged with the misapplication of national bank funds, Robert M. Petty; former president of the defunct Washington National Bank, of Washington, is being tried before Judge John Rellstab and a jury in the Federal Court here today. Petty was also interested in the Easton and Washington Traction Company and served in the capacity of vice-president and president. He has been indicted on the above charge on twenty-five counts by a federal grand jury. It is charged that Petty got away with about $30,295 of the bank funds by transferring the money from the account of the traction company in the Washington bank to his own peronal account. On counts 1 to 11 it is charged hat he transferred $11,300 to his account from the traction company's deposit, without showing a withdrawal of that amount from the traction company's books. No checks, drafts or memoranda of any kind were found to show that the traction company or, dered the withdrawal of the amount from its account. The remaining fourteen counts charge that he transferred money from the traction company's account to his own by the use of the company's bonds left in the bank as collateral for loans advanced. There were eighty of these bonds in the bank at the par value of $1,000 each. It is asserted that Petty from time to time placed twenty-four of these bonds in the cash drawer of the bank, making out deposit slips in his own acount for an amount always less than the par value of the bonds SO "sold." In this way it is claimed by the government he got away with an additional sum of $18,995. The bank was forced to suspend payment on November 16, because of 16 insolvency. An investigation of the books showed the alleged shortage made in the accounts of the traction company by the transfer of bank accounts in the bank without a similar transfer on the company's books. The bank was incorporated on April 16, 1898. Mr. Petty served as a director, then vice-president and later president, which position he held when the bank suspended payment. The first witness called in the case was William O. Hay, of Easton, Pa., secretary and general manager of the Northampton Traction Company, which was formerly the Easton and Washington Traction Company. He told how the eighty bonds were delivered to Mr. Petty in the office of Peter B. Brooks, a New York broker. and said they were to be left as collateral for the loans the bank had made to the traction company. He said he knew R. M. Eilenberger and knew also that he was treasurer of the traction company and cashier of the bank. He went on to explain the busi-